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The Best Analyzing Trading and Investing Method

As a professional trader, I have made and lost money trading all primary markets, including stocks, futures, options and foreign currency exchange. After using almost all the indicators are available, I have found that the pure price action analysis has become the most reliable and consistent way to make money from financial trading.

WHAT IS PRICE ACTION?

Apparently there are different although similar opinion about the true definition of price action. But based on my interpretation, it is basically a general direction of prices. Range bound or choppy markets could make it more difficult to analyze price action, as there is no particular direction in which prices move. Price action can also vary, depending on the time frame that you see. An uptrend in the daily chart may appear as a correction or retracement in 5 minutes or 1 hour chart. That is why it is important to understand your time frame in relation to the larger trade or long-term trend.

ARE INDICATORS USELESS?

From my personal experience, by using several indicators can help confirm the price action, or cause a trader to re-evaluate previous opinions about the market price action that is traded. Moving average can help, and there are software programs that use algorithms and the various inputs to try just to confirm and predict price direction. During evolution as a trader, I went from having a screen full of colorful stripes, dots and flashing lights, a simple screen with graphics and a maximum of 1-3 indicators. I’ve found that I had been more profitable just by using several indicators. Most brokers provide a free platform with indicator, but as of this writing there is usually a fee for service trend analysis or service and make a recommendation to buy or sell signal. If you use any services to assist with analysis of trends or prices, make sure that the provider gives a FREE trial or at least give a time frame to allow you to try this service at a reduced price, or get a refund if you are not satisfied.
As a trader, I have considered and tried everything from fundamental analysis, to use a screen filled with too many indicators, which only cause more confusion.

Sounds too simple, but the act of analyzing the pure price with just a few indicators have brought me the most successful and consistency as a trader.

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